United Way Supports Easier, More Affordable Options for Taxpayers

Tax season is a stressful time for many North Texans, due to the uncertainty and expense of filing taxes. But luckily there’s a growing movement to make filing tax returns easier and more affordable—or even free.

At United Way of Metropolitan Dallas, we lead and invest in a variety of initiatives that enable more North Texans to achieve financial stability. We offer free tax preparation to ensure our neighbors save money when filing their taxes and receive all eligible credits and refunds. We also advocate for governmental programs that reduce the cost and complexity of the tax filing process, and we’re big supporters of a new free tax filing tool from the Internal Revenue Service (IRS).

These money-saving initiatives directly support our mission to improve access to education, income and health—the building blocks of opportunity. Because when individuals and families can hold on to more of their money, they benefit in every area of their life.

Read on to learn more about United Way’s free tax programs, as well as the IRS’ new free tax filing tool.

United Way Offers Free Tax Services

Taxes are due on Monday, April 15, and we want to encourage every eligible North Texan to take advantage of our free tax prep services to file their returns.

Each year, thousands of our neighbors use our free tax prep services to file their returns. With the help of volunteer tax experts who are IRS certified, the average filer saves around $200 in tax preparation and filing fees, plus gets an average refund of $2,400 by claiming all their eligible tax credits and refunds. As a result, these programs bring millions of dollars in refunds back into our community every year.

During our 2022-2023 fiscal year, 9,500 North Texas families filed their taxes through our free services and received a total of $13.2 million in refunds. A team of 168 incredible volunteers made this impact possible.

“Tax time is an important financial moment, but unfortunately many families miss the opportunity for a refund because they don’t realize all of the tax credits that they are entitled to, or they make a mistake when they file,” said Greg Mangum, vice president of economic mobility at United Way of Metropolitan Dallas. “We encourage all eligible North Texans to use our Free Tax Programs so they receive all their eligible tax credits and refunds—because when families can hold onto more of what they earn, they’re in a better position to achieve financial stability.”

File Your Taxes for Free

To get started with one of our free tax services, explore your options below:

In-person, drive-through or drop-off tax prep assistance

Foundation Communities operates seven Community Tax Centers in the Dallas area that return millions of dollars to the local economy by helping families take better control of their finances. During the tax season, IRS-certified volunteers offer free tax help to individuals and families who earn less than $64,000 a year. Clients can file current and previous year tax returns, file non-resident returns and obtain ITIN renewals. Virtual and online services are also available through the Community Tax Centers.

Who’s eligible? Households that earned $64,000 or less in the last tax year are eligible for services including current and previous year tax returns, non-resident returns and ITIN renewals. Services are available in English and Spanish.

For updated information, service locations, or to sign up for text alerts, visit www.dallastaxcenters.org or text TAXCENTERS to 833-939-1387.

Online tax prep help

MyFreeTaxes is an online tax filing program that enables people to file their federal and state taxes for free while getting the assistance they need. United Way provides MyFreeTaxes in partnership with the IRS’s Volunteer Income Tax Assistance (VITA) program to help filers prepare their tax returns on their own or have their return prepared for them for free.

The benefits of MyFreeTaxes include:

• Free federal and state returns
• Available to everyone—no restrictive eligibility requirements (No geography or age limits)
• Mobile friendly
• Available in English and Spanish
• Staffed by IRS-trained specialists

Who’s eligible? Households with an income at or below $79,000 can access fully online, self-directed tax prep services that are not subject to fees or paid add-ons. Visit www.MyFreeTaxes.com. Services are available in English and Spanish.

Learn more about both of these services, including what you’ll need to bring with you, on our Free Tax Prep resources page.

IRS Direct File Available to Texans for the First Time in History

This year the IRS rolled out a new tool to make filing taxes more affordable and accessible for Americans.

Direct File is a free, public and online tax filing tool that enables Americans to file taxes directly to the IRS. The IRS is rolling the Direct File pilot out in phases, and Texas is one of the 12 states with access to the new tool.

Direct File allows tax filers to:

• File a 2023 federal tax return—for free—in English or Spanish
• Add your tax information with step-by-step guidance
• Connect with real-time online support from IRS customer service representatives
• File your taxes from smartphones, laptops, tablets and desktop computers

Who’s eligible? Direct File requires a valid ID and a social security number or ITIN, and there are household income limitations for filers making $125,000 or more. Direct File supports standard deductions, but not itemized deductions. And, it only works for people with certain kinds of health insurance, and for people without health insurance.

It’s important to note that Direct File is designed for tech-savvy taxpayers that have internet access to support a video call, a working camera on a phone, tablet or computer, and a U.S. phone number that accepts texts or phone call.

IRS Direct File will enable nearly 4 million Texans to file their taxes for free this year. To celebrate and spotlight the new IRS tool, on March 21 Mangum joined Angela Williams, president and CEO of United Way Worldwide, as well as local and federal officials to host a press conference at Dallas’ MLK Jr. Community Center.

During the event, Deputy Secretary of Treasury Wally Adeyemo said 3.8 million Texans would be eligible to file their taxes for free with the IRS this filing season and urged all tax filers to learn more about the new tool.

Find out more here about eligibility and how Direct File works.

Support Financial Stability in North Texas

At United Way of Metropolitan Dallas, we believe every North Texan should have the opportunity and access to achieve financial stability. We invite you to join the Live United movement to ensure North Texans can get and keep better jobs, establish savings and hold on to more of what they earn.

Ready to start making a difference right here at home? Here are three ways to improve financial stability in our community:

• Invest in United Way of Metropolitan Dallas to support our income-related programs.
• Sign up for Advocacy Alerts. We’ll let you know when and how to contact your elected representatives to advocate for policies related to financial stability.
• Volunteer with our partner Community Tax Centers to provide free tax prep support to North Texans.